Week 7 Flashcards by Bernard Osei

Q

What is portfolio weights?

A

The fraction of the total investment in the portfolio
held in each individual investment in the portfolio.
◦ The portfolio weights must add up to 1.00 or 100%.

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Q

How do you calculate portfolio weights?

A

X↓i = Value of investment (i) / Total value of portfolio

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Q

What is equally weighted portfolio?

A

A portfolio in which the same amount is invested in each stock

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